£40k new cars and premium car tax
Discussion
Looking at a new Kia that’s recommended retail price is £40245 as shown on Kia Website . This amount includes delivery, road tax, number plates
As the car new is over £40k it is subject to premium car tax, something like £335 per year for 5 years.
As the RRP includes these extras can it be taken into account to allow the basic car to be under £40k or do the DVLA only only look at this combined and not seen the car under £40k?
I have tried six dealership and I’m getting different answers to this question.
As the car new is over £40k it is subject to premium car tax, something like £335 per year for 5 years.
As the RRP includes these extras can it be taken into account to allow the basic car to be under £40k or do the DVLA only only look at this combined and not seen the car under £40k?
I have tried six dealership and I’m getting different answers to this question.
nickfrog said:
Surely it sneaks in under the £40k and avoid the higher tax once you have taken out the VED, which I think you can.
I think that is the correct answer - list price including any extras and delivery (ignoring any discounts) but not including the VED and First Year Registration fee.I’m in a similar position with a new mini, I’m not sure and I’ll only be certain when I get the renewal!
Try this.
https://www.parkers.co.uk/car-tax/
In my case it’s showing as being below the £40k limit, even though with extras it’s over £40k.
Try this.
https://www.parkers.co.uk/car-tax/
In my case it’s showing as being below the £40k limit, even though with extras it’s over £40k.
a_dreamer said:
However £40k seems mad for a Kia and a mini as another poster mentioned.
I don't know the MINI range but I don't see why KIA wouldn't price their car at a similar level to VW or Ford.Top end Sportage or Sorento are actually better value than the equivalent VW or Ford IMO..
And they're probably as reliable (more reliable?), as well built or engineered (if not better) while offering a 7 year warranty and holding their value well.
I think the idea of KIA as s
t cars is perhaps still around but hasn't been a reality for a long time. They are far from st cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax.
A 330i m sport is 39950, so add a colour or an option and it's a premium car. The fact that it would be common (before a chip shortage) to buy a £45k car with a £5k discount also annoys as you still pay the tax even if they sell most of the cars under the threshold.
t cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax. A 330i m sport is 39950, so add a colour or an option and it's a premium car. The fact that it would be common (before a chip shortage) to buy a £45k car with a £5k discount also annoys as you still pay the tax even if they sell most of the cars under the threshold.
nickfrog said:
a_dreamer said:
However £40k seems mad for a Kia and a mini as another poster mentioned.
I don't know the MINI range but I don't see why KIA wouldn't price their car at a similar level to VW or Ford.Top end Sportage or Sorento are actually better value than the equivalent VW or Ford IMO..
And they're probably as reliable (more reliable?), as well built or engineered (if not better) while offering a 7 year warranty and holding their value well.
I think the idea of KIA as s
t cars is perhaps still around but hasn't been a reality for a long time. I'm miles out of date, and I wrongly associate a Kia with losing loads of money in depreciation like they always used to I think.
a_dreamer said:
They are far from st cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax.
.
Yes sure, sorry, not particularly thought that was your view.t cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax. .
Perhaps it shows the £40k threshold is already obsolete as plenty of "non premium" cars have breached it through inflation and/or size and/or spec level.
Plenty of bigger high spec VW breach it so I can't see why KIA wouldn't follow suit.
a_dreamer said:
Yep it's the published list price of the car before discounts. Not for the car plus registration etc.
However £40k seems mad for a Kia and a mini as another poster mentioned.
£40,245 sounds like the EV6. One of the best looking EVs on the market and getting nothing but good reviews. Cars are expensive. However £40k seems mad for a Kia and a mini as another poster mentioned.
£40k plus on a MINI will need quite a few extras. But you will have a sub 5 second to 60 car with four wheel drive and 300 plus horsepower. Once again, cars are expensive.
a_dreamer said:
They are far from st cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax.
A 330i m sport is 39950, so add a colour or an option and it's a premium car. The fact that it would be common (before a chip shortage) to buy a £45k car with a £5k discount also annoys as you still pay the tax even if they sell most of the cars under the threshold.
This. £40,000 threshold catches an awful lot of mainstream cars, so was set too low. To make it worse, it was introduced almost five years ago and the threshold has never changed, while car prices have increased quite a bit. Frankly, on top of other taxes, it's a ripoff and i can't believe it didn't receive more opposition.t cars and that wasn't what I meant on the price point. I don't think a Kia is a premium car though. The fact it costs up to £40k adds further weight to the idea £40k is probably too low for a premium tax. A 330i m sport is 39950, so add a colour or an option and it's a premium car. The fact that it would be common (before a chip shortage) to buy a £45k car with a £5k discount also annoys as you still pay the tax even if they sell most of the cars under the threshold.
nickfrog said:
Perhaps it shows the £40k threshold is already obsolete as plenty of "non premium" cars have breached it through inflation and/or size and/or spec level.
From a consumer perspective it's completely obsolete - one might argue it has been since day1. However, it suits the government quite nicely:Extra tax revenue
Looks good on environmental grounds
Dolf Stoppard said:
£40,245 sounds like the EV6. One of the best looking EVs on the market and getting nothing but good reviews. Cars are expensive.
£40k plus on a MINI will need quite a few extras. But you will have a sub 5 second to 60 car with four wheel drive and 300 plus horsepower. Once again, cars are expensive.
Aren't EV's exempt from the £40k tax? Teslas are, at least my family members. £40k plus on a MINI will need quite a few extras. But you will have a sub 5 second to 60 car with four wheel drive and 300 plus horsepower. Once again, cars are expensive.
Stinger?
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